DUBAI: The Dubai property market hit a new high in the first quarter of 2025, racking up AED 114 billion in total sales despite global economic uncertainty. According to the Betterhomes Q1 2025 Market Report, the market surged ahead with a 23% year-on-year rise in transaction volume and a 29% boost in total sales value.
Apartments remained a popular choice for buyers, but villas stole the show this quarter. Villa transactions jumped by 65%, with value increasing by 56%—a clear sign of rising demand for more spacious, lifestyle-oriented homes. Off-plan properties led the charge, accounting for 59% of all transactions. Yet, analysts say a shift is brewing as more buyers show interest in ready-to-move-in luxury homes.
The Betterhomes report provides deeper insights into key trends driving the Dubai property market. There’s been a rise in end-user purchases and a noticeable increase in mortgage-backed transactions, indicating growing confidence in long-term investments. Off-plan launches remain strong, with developers actively pushing new projects to meet demand.
Dubai’s luxury real estate sector also continued to impress. High-net-worth individuals are turning to Dubai as a safe and stable investment hub. The leasing market reflected this shift, with rental prices holding firm and tenants showing a preference for long-term leases.
This upward trend defies wider global patterns, with many international property markets facing downturns. Dubai’s success is largely attributed to strong investor confidence, proactive government policies, and a growing expat population seeking both lifestyle and returns.
With Q2 already underway, experts are watching closely to see if Dubai’s real estate momentum continues—and early signs point to another record-breaking quarter ahead.
Read the full report here.
